Value is more Valuable than Price for high ticket items like homes
When selling a home, explain why it's worth what you're selling it for. Emphasize Value over Price.
Incentives, givebacks, and price. These are dirty words, according to Joe Colletti, who trains builders and real estate professionals to sell more effectively.
Coletti, who spoke at a Tampa Bay Builders Association meeting, says focusing on price and discounts is tacky and desperate, akin to ambulance-chasing lawyers who advertise on late-night TV.
He asks: Would you want to deal with a brain or heart surgeon who announced he was the cut-rate king?
Instead, Colletti, president of Colletti & Associates in Roswell, Ga., urges real estate professionals to focus on showing the customer value. He says:
Establish credibility. Focus on the builder’s reputation, years of experience, warranty program. Tell buyers, “We don’t discount our homes because we believe the value is apparent in what we offer.”
Explain why the home is worth what you're selling it for. Point out its value. Remind buyers that what you’re selling isn’t just a house, it’s a home where they will raise their families, celebrate holidays, enjoy their lives and mold their children’s future. When a buyer asks, “What’s the price?” respond, “This home is valued at …”
There's a place for incentives, but it's not at the front end of the sale just to get people in the door. It's at the back end, where a skilled sales agent can offer an incentive to close the sale.
Source: St. Petersburg Times, Judy Stark and Realtor Magazine
Home Won't Sell? Throw a Party
Creative marketing goes a long way in a slow real estate market. One strategy that's working for many practitioners is hosting parties, thereby exposing a property to hoards of potential buyers and real estate practitioners.
Holly Barr is one example. When the real estate practitioner of Better Homes Realty in San Jose, Calif., had trouble finding a buyer for a home, she joined forces with other real estate practitioners to hold a “progressive open house.”
It worked like this: 11 homes held open houses on the same weekday evening from 5:30 to 8 p.m. Each of the practitioners provided refreshments and chipped in to buy prizes such as Nordstrom gift cards for visitors who viewed all 11 properties.
The parties worked. Barr sold her listing for $555,000 – $10,000 less than the asking price. Another real estate professional who participated in the progressive open house found the buyer.
Similar social events also have worked for other area practitioners.
Brad Le of Coldwell Banker threw a cocktail reception at a town home he listed in San Jose. The $250 he spent on catered hors d’oeuvres paid off. The home got two purchase offers the following week; one came from someone who attended the party.
And Cheryl DeGolia of Peninsula Homes Realty in the Silicon Valley area has held neighborhood wine-and-cheese parties lately to help publicize her listings, hand-delivering invitations in advance. The neighbors appreciate the party and the chance to look around another neighbor's home, she said, and the owners ``just like to know you've done everything'' to market their home.
Source: San Jose Mercury News, Sue McAllister and Realtor Magazine